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Kramer Company Started Its Production Operations on August 1

question 30

Essay

Kramer Company started its production operations on August 1. During August, the Printing Department completed 17,600 units. There were 4,400 units in ending inventory which were 80% complete with respect to materials and 10% complete with respect to conversion costs. During August, the department accumulated materials costs of $45,408 and conversion costs of $76,670.​
Required:
a. Determine the cost of the goods transferred out.
b. What is the value of the ending inventory?


Definitions:

Trochlear

Pertaining to the fourth cranial nerve, responsible for eye movement, particularly rotation of the eyeball.

Subarachnoid Space

The area between the arachnoid membrane and pia mater around the brain and spinal cord, filled with cerebrospinal fluid.

Meninges

The three layers of protective tissue, the dura mater, arachnoid mater, and pia mater, that enclose the brain and spinal cord.

Arachnoid Mater

A delicate membrane, one of the three layers of the meninges, located between the dura mater and the pia mater, surrounding the brain and spinal cord.

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